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Us Consumer

All articles tagged with #us consumer

business1 year ago

"Analyzing Coca-Cola and PepsiCo's Impact on US Consumer Health and Market Performance"

Coca-Cola and PepsiCo are experiencing a drop in soda volume sold in North America, offset by price increases, as US consumers become more selective in their purchasing habits. Executives from both companies note a resilient and optimistic US consumer, despite changing buying behaviors, with some consumers making more value-conscious choices. While fewer Americans are consuming water, sports drinks, coffee, and tea, orange juice and Coke remain popular. Both companies are optimistic about the future, with Coca-Cola expecting organic revenue growth of 6-7% and PepsiCo expecting 4% growth in organic revenue for 2024.

via Yahoo Finance|
#beverage-industry#business#coca-cola
economy2 years ago

Retail Sales Defy Expectations, Rebound in November

November retail sales in the US surprised economists with a growth of 0.3%, defying expectations of a decline. Excluding auto and gas, sales increased by 0.6%. While some categories saw increases, such as food services and sporting goods, sales at gasoline stations and miscellaneous stores dropped. The report reflects a slowdown from the strong summer spending, and economists predict a continued slowdown in the labor market and spending growth heading into 2024. The Federal Reserve, which kept interest rates steady, expects lower growth next year. The resilience of the consumer suggests a soft landing for the economy, but it also indicates that the Fed may not cut rates as quickly and as much as the markets anticipate.

via Yahoo Finance|
#economic-data#economy#federal-reserve
business2 years ago

Retail Earnings Diverge as Analysts Warn of Worsening Trends

Wall Street is anticipating a divergence in retail earnings this week as the US consumer remains selective with their spending. Service-based retail stocks have seen an increase due to higher spending on travel, while automobile and parts stocks have declined. Companies in the consumer staples sector have fared better than those in the discretionary sector. Walmart has outperformed the S&P 500, benefiting from consumers trading down amid inflation, while Target has seen shares fall due to its higher dependence on discretionary spending. Home Depot, Target, and Walmart are among the retailers set to release earnings this week. Analysts have mixed views on the sector, with some expecting a slowdown driven by student loan repayments, declining excess savings, and higher borrowing costs.

via Yahoo Finance|
#business#consumer-staples#discretionary-spending
economy2 years ago

Warning: U.S. Consumer Approaching Cliff Edge, Experts Say

The U.S. consumer is facing challenges as economic indicators show a depletion of excess cash and negative real income growth, warns Chris Watling, CEO of Longview Economics. Despite a projected strong GDP growth for the third quarter, concerns remain about the longer-term economic outlook and the potential for a recession. Watling predicts that the labor market will deteriorate in the coming months, which could kickstart a recession. He suggests that the stock market is struggling to find direction and advises being underweight equities in the long term.

via CNBC|
#economic-outlook#economy#household-savings
finance2 years ago

September Retail Sales Surge, Defying Consumer Slowdown Concerns

Retail sales in September exceeded expectations, with a growth of 0.7% from the previous month, indicating the resilience of the American consumer despite predictions of a slowdown. Sales excluding auto and gas also increased by 0.6%, surpassing estimates. The report reflects strong consumer spending, which has been a key factor in keeping the US economy out of a recession. However, some companies have indicated a potential slowdown in the future, as consumers and businesses are spending down their cash buffers.

via Yahoo Finance|
#consumer-spending#economic-data#finance
finance2 years ago

Bank of America CEO: Fed's Soft Landing Victory Signals Weakening Credit Conditions

Bank of America CEO Brian Moynihan believes that the Federal Reserve has successfully tamed inflation and achieved a soft landing, but pressures such as the strength of the US consumer may keep interest rates higher for longer. Moynihan stated that US consumers have slowed down and are spending at pre-pandemic rates, and he expects the Federal Reserve to raise interest rates once in November, followed by three rate cuts in 2024 and four in 2025. However, he cautioned that geopolitical risks and fighting inflation without political influence are concerns. Moynihan also expressed opposition to new bank capital requirements, citing potential negative impacts on American economic competitiveness.

via Yahoo Finance|
#bank-of-america#federal-reserve#finance
economy2 years ago

Investors Brace for the American Consumer's Impending Wall

According to Bloomberg's Markets Live Pulse survey, more than half of respondents believe that personal consumption, the main driver of economic growth, will shrink in early 2024, marking the first quarterly decline since the pandemic began. Another 21% predict this reversal will happen even sooner, in the last quarter of this year, as high borrowing costs and dwindling Covid-era savings impact household budgets. This finding contradicts the optimism seen in US equity markets, and if consumer spending contracts, it could lead to further downside for stocks. While the US economy is currently showing signs of growth, some analysts question the sustainability of this strength, attributing it to temporary factors such as a summer splurge on entertainment. Headwinds such as rising delinquency rates on credit cards and auto loans, as well as the impending resumption of student loan repayments, pose challenges for consumers in the coming months.

via Yahoo Finance|
#economic-growth#economy#household-spending
economy2 years ago

Global Markets React to China's Economic Slowdown While US Sleeps

As China's economy continues to struggle, with disappointing readings for industrial production and retail sales, the country's central bank has cut lending rates and the yuan has slid to its lowest level since 2023. In contrast, the U.S. economy appears to be in a better position, with fund managers predicting a soft landing or no landing at all. U.S. Treasury yields are climbing, and the dollar is gaining strength against currencies in emerging economies. The retail sales report in the U.S. is expected to reinforce the robust readings for the economy, while Home Depot's earnings update will provide insight into the performance of big retailers.

via Reuters|
#chinas-economy#economy#emerging-markets
finance2 years ago

"Student loan payment pause ending, leaving many borrowers unable to make payments"

The upcoming restart of student loan payments in the US is set to weaken the strong US consumer, as 34% of borrowers say they will not be able to make payments, according to a survey by Morgan Stanley. The restart of payments will negatively impact low-income households the most. Concerns over upcoming debt and mortgage payments have soared to the highest level since the survey began. As a result, discretionary spending categories could see the biggest decline if consumers need to tighten their belts, which could fuel recession fears.

via Yahoo Finance|
#debt-payments#finance#morgan-stanley